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CAFFEINE REPORT ON TAP: Look out for the Institute of Medicine’s much-anticipated report on the potential health hazards of caffeine consumption, which is expected to be out at 9 a.m. today. The report, which was requested by FDA, will summarize a two-day IOM workshop in August that convened a variety of experts to look at the impact of caffeine being added to foods and dietary supplements. While energy drinks are a hot-button issue, don’t expect any policy recommendations today. However, the report is likely to be used to frame the debate on Capitol Hill.

Programming Note: MA will be taking Monday off in observance of Martin Luther King, Jr. Day and will return to its regular schedule on Tuesday to catch you up on everything food and ag-policy related. Happy long weekend and safe travels for those of you heading out of town!

NEW CBO SCORE ON SUBSIDY LIMITS: The job negotiators have in trying to eliminate provisions in the farm bill that would limit crop subsidy payments and set eligibility requirements just got even tougher, thanks to new calculations by the Congressional Budget Office, reports Pro’s Bill Tomson.

“In a report presented as an Excel file, a copy of which was obtained by POLITICO, CBO now estimates such limits could save taxpayers $387 million over the next 10 years. That’s more than twice the $177 million in savings originally estimated.”

“The Senate and House farm bill versions contain similar provisions — authored respectively by Sen. Chuck Grassley (R-Iowa) and Rep. Jeff Fortenberry (D-Neb.) — that would place hard caps of $250,000 per year for a farmer and their spouse and $125,000 per year for only one ‘farm manager’ on a single farm.” However, an effort to remove the provisions in conference remains one of the biggest holdups in the negotiations. Pros can read more here: http://politico.pro/1atMhYr

PETERSON OPEN TO DAIRY COMPROMISE: Another big obstacle in the farm bill negotiations appeared to be nearly resolved last night, when Rep. Collin Peterson (D-Minn.) signaled his willingness to accept a compromise offered by Rep. Frank Lucas (R-Okla.) on the Dairy Market Stabilization Program.

“I will not be happy, but I’m not going to hold the [farm] bill up over it,” Peterson said about the compromise Lucas finished drafting this week. “I would not say it’s the worst thing in the world.

Lucas’s proposal would not create the kind of supply management program that opponents, including Speaker John Boehner, have criticized for being over regulated, but Peterson said the compromise could meet his demands for a system that sends a market signal when we get oversupplied to farmers. Tomson has the full story for pros: http://politico.pro/1aSCueX

- National Milk Producers Federation responds: NMPF, which has been advocating for the inclusion of the Dairy Market Stabilization Program in the final farm bill said in a statement last night that it was “conceivable that an alternative mechanism could be developed.” “Any such approach must still offer an effective risk management tool to farmers, while containing suitable incentives to program enrollees to achieve cost controls. As always, the devil is in the details, and we will not support any program that does not effectively address the needs of our members throughout the U.S,” said Jim Mulhern, NMPF’s president and chief executive officer.

QUOTE OF THE WEEK: Since we are on the subject of the potential dairy compromise … After seeing little sign of progress earlier this week, Peterson let loose a comment that summed up his frustration. “They’ve got me in farm bill hell, and I can’t get out,” he said.

SENATE APPROVES SPENDING BILL WITH BOOSTS FOR FDA, CDC: The $1.1 trillion fiscal 2014 omnibus spending bill — which would give $91 million more to the FDA and $567 million more to the CDC, while simultaneously decreasing the budget of USDA’s Food Safety and Inspection Service by $19 million — passed the Senate last night by a 72-26 vote.

The House approved the spending bill Tuesday, 359-67.

Note that report language submitted by Rep. Hal Rogers (R-Ky.) that includes recommendations for USDA to honor its obligation to inspect catfish and delay enforcement of its country of origin labeling provisions is separate from the bill itself, does not require Senate approval and does not have the rule of law.

SCHOOL LUNCH WAIVER WATCH: Also, in the explanatory statement: directions to USDA to establish a waiver approval process within 90 days for schools that certify they cannot comply with new school lunch, breakfast and competitive food standards without increased costs. The inclusion marks yet another attempt by House Republicans to loosen some of the regulations that went into effect after the passage of the Healthy Hunger-Free Kids Act.

USDA, which is under no legal obligation to comply, has so far given no indication the department will follow through with the report language.

A CEREAL TREND?: Original Grape-Nuts cereal is now GMO free, Post Foods tells MA, joining Original Cheerios in making the jump to conventionally produced ingredients in response to consumer pressure.

“We've confirmed our recipe and suppliers do not contain GMO ingredients, and the Non-GMO Project seal will appear on boxes of Grape-Nuts Original on store shelves," said Mangala D'Sa, brand director for the cereal.

But it’s unclear if other varieties of Grape-Nuts, and Post cereals more broadly, will also make the switch. In a statement to anti-GMO foods group GMO Inside, Post noted that “we are exploring some of our other cereals to see if there is potential going forward to add more non-GMO verified products to the Post Foods product line.” The statement is available here: http://bit.ly/LkEOlH

- Pulling back the curtain: Much like Original Cheerios, Grape-Nuts was an easy target to go GMO free. There are no genetically engineered strains of wheat or barley — the cereal’s two main ingredients — on the market, and so only one ingredient, isolated soy protein, would need to be sourced conventionally.

UNFULFILLED PROMISES: More than 200 consumer advocacy groups and food companies are calling on President Barack Obama in a letter to follow through with a 2007 campaign promise he made to take up GMO labeling.

The letter was released Thursday morning at a press event on Capitol Hill with Democratic Reps. Peter DeFazio (Ore.), Rosa DeLauro (Conn.), Ann McLane Kuster (N.H.) and Rep. Chellie Pingree (D-Maine), along with representatives from Stoneyfield Farm Inc., the Environmental Working Group and Center for Food Safety. See the full letter here http://politico.pro/K7sy72, and read Jenny Hopkinson’s story from the event: http://politi.co/1j3qR6O

- GMA responds to call for action: The Grocery Manufacturers Association, which has fought against state labeling initiatives, responded to the letter and Thursday’s event by reiterating its push for a federal solution, which was first reported by our Jenny Hopkinson and Helena Bottemiller Evich. (ICYMI, here’s a link: http://politi.co/1ieC0Bl)

“Our number one priority is to ensure that consumers have access to safe and affordable food,” said GMA spokesman Sean McBride. “That is why we are working with Congress on a federal GMO labeling solution that would require a label on foods containing GMO ingredients if the FDA — our nation’s foremost food safety authority — determines there is a health or safety risk. That approach will eliminate consumer confusion, avoid an unnecessary and confusing 50-state patchwork of GMO labeling laws and provide consumers with confidence in the safety of the food supply.”

- Acheson backs GMA: David Acheson, FDA’s former associate commissioner of foods, said in a post on his new consulting firm’s website that it’s “excellent that GMA is proposing a process to establish a labeling approach that is uniform.” See his take here: http://bit.ly/1j9C7kC

RECESSION’S ‘SILVER LINING?’: Americans improved the quality of their diet during the recession, according to a new study from USDA.

Working-age Americans consumed five percent fewer calories on a daily basis between 2005-2006 and 2009-2010, researcher Jessica Todd, an agricultural economist for USDA, found. They also lowered their daily intake of cholesterol by 24 milligrams and fast food calories by 53. See the full study here: http://politico.pro/1asHAea, and pros can read my story for a quick overview here: http://politico.pro/1eO73ng

MA's INSTANT OATS:

A GOP senate candidate in North Carolina called food stamps “slavery,” while calling for the elimination of the Department of Agriculture, reports Tim Murphy for Mother Jones. http://bit.ly/1eGsHJX

Sen. David Vitter (R-La.) has introduced legislation to require food stamp recipients to produce a valid photo ID every time they purchase food with their benefits card, reports Shadee Ashtari for Huffington Post. http://huff.to/1cwjgrH

Sen. Richard Blumenthal (D-Conn.), a member of the Senate Agriculture Committee, brought a glass of milk to the Senate floor Thursday to celebrate a reported deal on dairy in the farm bill negotiations, The Hill reports. http://bit.ly/K7T6Fp